Fitch: No change for SK Energy

Fitch Ratings commented that SK Energy Co., Ltd.'s BBB long-term foreign-currency issuer default rating and F3 short-term issuer default rating are unlikely to be affected by the proposal that its lubricant division be separated into a new entity.

The outlook is negative.

The new independent entity will remain wholly owned by SK Energy and the transaction is subject to approvals, Fitch said.

The proposed reorganization is unlikely to affect the company's ratings, as SK Energy will remain firmly in control of the lubricant business and Fitch said it expects minimal impact on the company's consolidated credit metrics.

But should SK Energy decide in the future to partially divest ownership of the new entity, the divestment proceeds, if retained, may help improve its consolidated credit metrics, the agency said.

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